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UBS is today releasing restated figures for 2003 and 2002 to align comparative prior periods with changes in accounting and presentation, which became effective 1 January 2004. The overall impact of these changes is to decrease net profit by CHF 146 million and CHF 5 million for 2003 and 2002, respectively. Please note that all the numbers contained in this restatement release are unaudited.

CHF million

2003

2002

Net profit before restatement

6,385

3,535

Restatement impact from:

Revised IAS 32/39

-82

-24

FV of investment property

-64

19

Credit loss incurred on OTC derivatives

0

0

Total restatement impact

-146

-5

Net profit restated

6,239

3,530

The restatement consists of the following changes in accounting and presentation:

Revised IAS 32 and 39 UBS decided to early adopt these revised standards as of 1 January 2004. Therefore, comparative prior years 2003 and 2002 need to be restated accordingly.

Revised IAS 39 Revised IAS 39 permits any financial instrument that is not a derivative or included in the trading portfolio to be designated at inception, or at adoption of this standard, to be carried at fair value, with changes in value passing through the profit and loss account. UBS has chosen to designate the majority of its compound instruments issued to be carried at fair value in this way, which will eliminate the requirement to separate embedded derivative instruments from the host contract. This will reduce profit and loss volatility generated by the issuance of structured debt instruments, such as equity-linked GOALs or credit-linked notes. Previously such instruments had to be accounted for on an accrual basis, while the embedded derivative and related hedge instruments were carried at fair value. Now, the instrument in its entirety is carried at fair value, with changes in fair value being recorded in income. The adoption of this standard requires an opening adjustment to retained earnings as of 1 January 2002. In addition, a new liability line called "Financial liabilities designated at fair value" will be shown on our balance sheet, where such instruments are now recorded, transferred from the "Debt issued" line.

Revised IAS 32 Revised IAS 32 provides that netting is permitted only if normal settlement is also intended to take place on a net basis. In general, that condition is not met and therefore certain replacement values that were previously offset will be reported separately. This has increased the total amount of assets and liabilities on our balance sheet by CHF 165 billion and CHF 167 billion at 31 December 2003 and 31 December 2002, respectively. The impact of the restatement on our prior period net profit, earnings per share and shareholders' equity is not material.

Please find following a summary of the restatement effects on the P&L of adopting revised IAS 32 and 39:

2003

2002

in CHF million

IB

CorporateCenter

UBS

IB

CorporateCenter

UBS

Equities

-22

-3

Fixed Income, Rates and Currencies

-63

-6

Income1

-85

2

-83

-9

-21

-30

Total operating income

-85

2

-83

-9

-21

-30

Performance before tax

-85

2

-83

-9

-21

-30

Tax

-1

-6

Net profit restated

-82

-24

NOTE: 1 In Group accounts, booked as Other income, in Investment Bank under Fixed Income, Rates and Currencies

Credit risk losses incurred on OTC derivatives Effective 1 January 2004, the accounting for credit risk losses incurred on over-the-counter (OTC) derivatives has been changed. All such credit risk losses are now reported in net trading income and no longer through credit loss expense. This change better reflects how the business is run and simplifies the current treatment. While this change only leads to a line reclass between credit loss expense and trading income on Group level, it affects Business Group performance. Actual losses on OTC derivatives as well as the change in the valuation reserve required for OTC derivatives are now reported as incurred, without any deferral (in the past they were reported as credit loss expense, deferred over three years).

Please find following a summary of the restatement effects:

2003

2002

in CHF million

WM&BB

IB

CorporateCenter

UBS

WM&BB

IB

Corporate Center

UBS

Equities

3

-14

Fixed Income, Rates and Currencies

-50

-52

Income1

-8

-47

11

-44

-66

-25

-91

Credit loss (expense)/ recovery

84

-40

44

38

53

91

Total operating income

-8

37

-29

0

-28

28

0

Performance before tax

-8

37

-29

0

-28

28

0

Net profit restated

0

0

NOTE: 1 In Group accounts, booked as Trading income

Change in treatment of corporate client assets Effective 1 January 2004, UBS re-classified corporate client assets in Business Banking Switzerland (except for pension funds) to exclude them from invested assets. This change was made because UBS has a minimal advisory role for such clients and asset flows are erratic as they are often driven more by liquidity requirements than pure investment reasons. This change has reduced invested assets of Business Banking Switzerland by CHF 76 billion and CHF 78 billion as at 31 December 2003 and 31 December 2002, and increased net new money by CHF 7.5 billion for 2003, but had no impact on net new money for 2002.

Restatement impact on Group Income Statement The following table splits out the overall impact of these accounting changes to the affected P&L lines of the Income Statement: